It’s been another rough day for indices with US markets taking out their 50-day averages and the UK100 driving under the 6,000 round number. JPY meanwhile continues to strengthen (JPY pairs fall) and is not testing a number of key levels including 105.00 against USD, 150.00 against GBP and 120.00 against EUR.
Asia Pacific Indices
Japan 225 is breaking down again, taking out channel support near 15,790 which may become new resistance. The index has dropped into the 15,680 to 15,760 zone with next potential support in the 15,500 to 15,540 area. Falling RSI indicates downward pressure increasing.
Hong Kong 50 remains under pressure falling from near 20,440 toward 20,240 with next potential support near 20,210 a Fibonacci level then the 20,000 round number. RSI under 50 signals momentum turning downward again.
North American and European Indices
US 30 continues to roll lower with its 50-day average near 17,795 become new resistance following a breakdown. Index has dropped into the 17,590 to 17,670 area with next support possible near 17,500. RSI bouncing around between 40 and 60 indicates a downdraft within a sideways trend.
US NDAQ 100 tested 4,405 intermediate support which has held so far with next support possible near 4,345 a Fibonacci level. Resistance drops into the 4,430 to 4,440 area. RSI levelling off near 40 and a doji candle suggest selloff may be slowing.
US SPX 500’s correction is deepening with the index breaking under its 50-day average near 2,080 and dropping toward 2,065 before settling near 2,070. Next potential support in the 2,045 to 2,050 zone. RSI holding 40 so far suggests this could be a downswing within a larger sideways trend.
UK 100 broke down today, taking out the 6,000 round number on its way down from near 6,040 toward the 5,910 to 5,940 area. RSI nearing oversold but confirms downward pressure still increasing with next potential support in the 5,880 to 5,900 area.
Germany 30 found support near 9,500 and appears to be stabilizing in a range between there and 9,560 or 9,620 holding above its April low near 9,440. RSI suggests downward pressure still increasing.
Gold has levelled off near $1,285 just above $1,282 a Fibonacci level but well short of the $1,300 round number. RSI also appears to be indicating upward momentum peaking for now. Initial support tests in a pullback appears possible near $1,276 then $1,260 and the 50-day average near $1.250.
Crude Oil WTI successfully retested channel support near $47.90 and has bounced back toward $48.40 with initial resistance near $49.00. RSI dropping toward 50 but holding that level indicates momentum shifting from upward to neutral and also that previous overbought conditions are starting to ease.
US Dollar Index continues to climb toward a test of the 95.00 round number with next potential resistance near 95.55 as it trades in a 94.00 to 96.00 channel.
EURUSD ran into resistance at its 50-day average near $1.1300 and has been knocked back down toward $1.1200 with next potential support near $1.1145 then $1.1111. RSI falling back under 50 confirms a new downdraft underway.
GBPUSD is bouncing around between $1.4100 and $1.4150 lately with more support possible near the $1.4000 round number. RSI under 50 and falling suggests downward pressure still increasing. Initial resistance on a rebound possible near $1.4190 then $1.4270.
NZDUSD is testing the $0.7000 round number as support this time having dropped back from $0.7070. RSI falling away from 70 indicates a downward correction of a recent rally underway with next potential support near $0.6950.
AUDUSD remains in a slump, retesting $0.7390 as new resistance and falling toward $0.7350 with next potential support at the 200-day average near $0.7255. RSI testing 50 where a break would confirm a downturn in momentum.
USDSGD has stabilized just above the $1.3500 round number with initial resistance possible near $1.3560 then the 50-day average just above $1.3600. Support rises toward $1.3540.
USDJPY has a big support test underway in the 105.00 to 105.40 area. so far support at the May low has held and a double bottom appears to be forming. The pair has bounced toward 106.00 with next resistance possible near 107.30. RSI also suggests downward pressure levelling off. A breakdown, however, would signal the start of a significant new downleg.
GBPJPY is breaking down today, taking out the 150.00 round number which may become new resistance. Initial support has emerged near 149.40. RSI approaching oversold territory but confirming downward momentum still increasing for now.
EURJPY is breaking down today, falling below 120.00 to confirm yesterday’s breakdown attempt and diving down toward the 118.90 to 118.70 area with next potential support near 118.00. RSI getting oversold so a trading bounce possible at some point.
CADJPY is testing 82.00 channel support where a breakdown would signal the start of a new downleg with next potential support near 81.70 then a measured 80.50. RSI still under 50 confirms sideways to down trend intact.
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